“Candy Labs will be a research and development studio that experiments with new ideas to spin up the next wave of ground-breaking entertainment for children,” read a statement.

“The ideas will be a mix of digital and non-digital entertainment. Some of the new concepts will be acquired from third parties, but most ideas will originate in-house.”

Michael Acton Smith, CEO and founder of Mind Candy, commented: “We clicked creatively with the Origami Blue guys from the outset and are hugely excited to bring them on board. Developing new IP has always been part of the plan to expand Mind Candy. We have lots of ideas bubbling away and can’t wait to see the new visions come to life.”

Origami Blue’s Mark Knowles-Lee added: “Joining Mind Candy to help build the foundation for Candy Labs is incredibly enticing as it will allow us to focus purely on what we love – creating quality, playful innovation for future generations.”

Origami Blue was set up by ex-Disney Blackrock studios creative Edd Smith, Mark Knowles-Lee and James Ovnik. They previously produced video games such as Split-Second for Disney before the studio was closed last year.

Moshi Monsters is one of the most successful licensed properties currently in the UK toy market.

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